LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6411 NOTE PREPARED: Dec 13, 2023
BILL NUMBER: HB 1263 BILL AMENDED:
SUBJECT: Elimination of Money Bail.
FIRST AUTHOR: Rep. Smith V BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill abolishes money bail and repeals the Indiana bail law (regulating bail
agents). It makes conforming amendments.
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues: Both the state General Fund and the Special Death Benefit Fund would
experience a revenue loss.
The state General Fund receives a portion of the proceeds collected from certain court fees assessed by a
sentencing court when a person is convicted of a felony, misdemeanor, or infraction that are recovered from
cash bonds that are deposited with the court. The extent of revenue loss is not able to be determined. The
Explanation of Local Revenues describes this in more detail.
In addition, a $5 fee is collected by the clerk or sheriff at the time that bail is collected. This fee is forwarded
to the county auditor for further remittance to the Special Death Benefit Fund managed by the trustees of the
Public Employees’ Retirement Fund. In CY 2021, counties reported collecting $275,000 in death benefit fees.
Explanation of Local Expenditures: Permitting an arrestee to be released without money bail or surety
would likely reduce the confined population that is awaiting trial in county jails. OFMA cannot determine
the extent of this reduced population and any possible savings. However, the savings would likely be
extensive in the 34 counties experiencing overcrowding in CY 2021.
HB 1263 1 In 2021, the most recent year that was available, the Indiana Criminal Justice Institute reported that 21 county
jails were overcrowded (between 80% and 99% capacity) and 13 county jails were over 100% capacity. This
is based on annual jail inspection reports, representing a snapshot of one day when the inspection occurred.
The percent of this jail population that is due to pretrial population was not able to be estimated but is likely
to be significant.
[The average cost per day is approximately $64.53 based on the per diem payments reported by U.S.
Marshals to house federal prisoners in 11 county jails across Indiana during CY 2021.]
Explanation of Local Revenues: A revenue loss would occur from two different sources for counties and
cities and towns. The extent of this revenue loss is not able to be determined.
First, proceeds from cash bonds are used to pay fines, court costs, other fees, and publicly paid costs of
representation if the person either pleads or is found guilty of a criminal charge. Counties may not be able
to collect court fees or recover certain costs from arrestees who are indigent and are released before trial and
who do not post cash bonds. Consequently, counties may lose revenue when criminal defendants either plead
to a lesser misdemeanor or are found guilty of a criminal charge for a misdemeanor and the courts have no
cash bond from which to draw to recover costs or to collect fees.
Second, a bond administration fee is collected when a defendant executes a cash bond. This fee may be
retained regardless of the disposition of the case. This fee is deposited in the County or Local General Fund
depending on the court collecting. For CY 2021, counties reported collecting $1.36 M from the bond
administration fee.
State Agencies Affected:
Local Agencies Affected: County courts, county sheriffs.
Information Sources: IC 35-33-8-3.2; Indiana Judicial Report CY 2021; 2022 Indiana Criminal Code
Reform Evaluation Report, Indiana Criminal Justice Institute
Fiscal Analyst: Mark Goodpaster, 317-232-9852.
HB 1263 2